C is an equal partner in the ABC Partnership. The partnership has made no election under IRC Section 754. C sells her interest to E for it's fair market value of $99,000 when her basis was $88,000. At

C is an equal partner in the ABC Partnership. The partnership has made no election under IRC Section 754. C sells her interest to E for it's fair market value of $99,000 when her basis was $88,000. At year-end, the assets of the partnership are as follows:

Cash basis $22,500 market $22,500

Accounts receivable basis $45,000 market $45,000

Inventory basis $90,000 market $94,500

Land basis $90,000 market $180,000

Assuming that C's outside basis equaled the partnership's inside basis at the time of the sale, what is E's basis in the inventory at year end?

$0

$30,000

$31,500

$90,000